The global transition to electric vehicles is losing momentum as both policymakers and automakers scale back ambitions. The EU is retreating from its 2035 combustion-engine phaseout, while Ford is pausing F-150 Lightning production and redirecting resources toward hybrids after steep EV losses. Demand has softened as incentives expire in the US and Europe and regulatory pressure eases under the Trump administration. With affordability and range anxiety still major consumer hurdles, EV share is projected to slip to 6% next year, signaling a far slower transition than industry leaders once expected.

Albertsons Media Collective debuted an offsite ad capability that allows shoppers to add products, recipes, coupons, or other offers to their shopping carts. The format is currently available for display ads and shoppable content and will roll out to connected TV (CTV) and social media next year. Albertsons’ new click-to-cart functionality is one of several initiatives aimed at promoting “frictionless commerce,” which is designed to reduce the time between inspiration and purchase. A speedier, simpler path to purchase isn’t only useful for shoppers—it’s also a major selling point for CPG advertisers as they determine where to allocate their retail media budgets.

China’s economic malaise deepened in November. Retail sales rose just 1.3% YoY, well below analysts’ median forecast for 2.8% growth, despite blockbuster Singles Day promotions. Investment and industrial output also fell short of expectations, signaling greater caution from businesses and individuals as they grapple with trade and economic uncertainty. To succeed in this difficult environment, brands will need to localize their marketing and product strategies, be competitive on price, and invest in immersive experiences to draw shoppers in.

Destination XL and FullBeauty Brands plan to merge in early 2026, creating a unified inclusive-apparel retailer serving 34 million households and nearly 300 stores. The combined company aims to leverage shared customer insights, manufacturing scale, and complementary product expertise to deliver better fit, broader assortments, and a more cohesive omnichannel experience. The merger also targets $25 million in annual savings by 2027 through improved sourcing, organizational efficiencies, and cost reductions. With a large share of US adults needing inclusive sizing yet historically underserved, the deal positions the new entity to meet demand with more consistent, high-quality offerings at scale.

Temu’s new Shopify integration lets merchants manage listings, inventory, and fulfillment across more than 30 markets, positioning the platform to broaden its assortment and mitigate the impact of tightening global trade rules and de minimis closures. As governments introduce new barriers and regulators increase scrutiny in the US and EU, Temu is evolving from a low-cost disruptor into a more traditional marketplace. The move highlights how its next phase of growth depends on attracting and retaining sellers, streamlining cross-border operations, and competing on service and trust against established players like Amazon and Walmart.

Consumer spending stayed resilient in Q3, but widening gaps between high- and low-income households reshaped retail performance, with affluent shoppers driving growth while budget-constrained consumers cut back. Bank of America data shows most spending momentum came from middle- and higher-income groups, reflected in retailers’ earnings: Williams-Sonoma saw premium demand lift margins, while Pottery Barn lagged; off-price chains thrived as value-seeking surged; and Walmart and Amazon gained share as Target struggled with discretionary softness. Overall, the data points to a sharply diverging retail landscape heading into a holiday season poised to favor mass and off-price merchants.

Lululemon athletica’s CEO Calvin McDonald will relinquish his role on January 31, 2026 to an as-yet-unnamed successor. Whoever that person is will face the task of restoring the brand’s authority in a category it once dominated—particularly in North America, where sales have been stagnant or negative for seven straight quarters. Whoever takes the helm at lululemon should look to refocus the brand on its athleisure roots. The company needs to make sure that its core product lines are resonating with consumers before devoting significant resources into other categories like footwear, where it faces a tougher path to building credibility amid entrenched competition.

Shopify has introduced 150 updates, headlined by two major tools aimed at expanding reach and boosting conversions: an “agentic storefront” that lets consumers buy products directly through AI platforms like ChatGPT and a new Shopify Product Network that helps merchants fill product gaps via cross-store recommendations. The agentic storefront should give merchants an early advantage in AI-powered commerce, while the Product Network should boost conversions, and create new revenue streams without adding inventory or operational burdens.

Costco is gaining market share across nearly all categories it operates in, as shoppers respond to its combination of value, quality, and newness, CFO Gary Millerchip said on the retailer’s most recent earnings call. Costco is one of many retailers benefiting from both consumers’ search for value and the K-shaped economy. Like Walmart and Dollar General, the company is well positioned to outperform this holiday season as shoppers cut gift budgets and prioritize necessities. Costco’s results point to a retail environment in which share gains are driven by traffic, value, and loyalty, one that does not bode well for chains that lack pricing credibility or differentiation.

Retailers are investing in AI to improve operations and customer service. From design trend predictions to intelligent assistance, AI is moving from back-office functions to visible, customer-facing applications. Retailers that don’t explore AI risk losing out on positive outcomes, from efficiency gains and cost reductions to stronger personalization and customer loyalty. The winners will be those that use AI to solve real consumer pain points such as finding matching makeup shades or suggesting recipes based on nutrition goals.

The heat on Temu parent PDD Holdings is growing, at home and abroad. The company is being investigated by China’s State Administration for Market Regulation (SAMR) over reports of fraudulent deliveries, per Bloomberg, while Temu’s Dublin headquarters were raided last week by the EU over concerns that the company breached foreign subsidy rules. PDD is losing goodwill in many of the markets it operates in—including in China, its most important. Employees reportedly got into fistfights with SAMR investigators at the company’s Shanghai offices, leading to multiple arrests. Such confrontations are highly unlikely to endear PDD to the powerful regulator, which has the ability to instigate sweeping probes into the company’s business practices.

Solo dining is contributing more to restaurant spending as consumers carve out room for experiences despite rising financial stress. Solo diners now account for nearly half (47%) of quick-service restaurant (QSR) orders, up from 31% in 2021, according to Yum Brands, while a Toast report found a 22% spike in single diner reservations in Q3. The uptick in solo dining is a rare bright spot for the restaurant industry, which is otherwise struggling to find ways to engage consumers.

TikTok grabbed the lead in Cyber Five advertising traffic this year, passing the 50% mark, per Industry KPI data from MikMak, showing it was the main discovery channel for early holiday shoppers. TikTok’s major swing past Meta this year shows that it is proving more effective at routing users from content into product pages and retail websites where purchases take place. Despite TikTok’s ad traffic advantage, Meta had an edge in facilitating purchases. Meta posted a 6.8% conversion rate over the Cyber Five, compared with TikTok’s 1.06%. These trends suggest advertisers would benefit from using two strategies during the rest of the holiday season: using TikTok to spur demand and lure shoppers, but looking to Meta to convert that interest into sales.

Amazon’s move to fold perishable groceries into same-day delivery is paying off quickly, with nine of the top 10 best-selling items in eligible markets now perishables—a sign that shoppers trust the faster service for everyday needs. The shift supports CEO Andy Jassy’s bullish stance on grocery as Amazon expands same-day perishables to more than 2,300 locations and builds on more than $100 billion in online grocery sales over the past year. With Walmart and Kroger also ramping up rapid fulfillment, the stakes are rising in a grocery ecommerce market surging in both order frequency and value.

Canadian consumers are heading into the holidays with tight budgets, as surveys show a rising share cutting back or shifting spending toward essentials. This pullback, combined with flat retail sales and broader economic worries, suggests retailers shouldn't expect a late-season rebound to bail out weak demand. To lure what spending does occur, retailers will need to double down on value messaging and use loyalty programs to win over highly price-sensitive consumers.

Instacart’s AI pricing tools may be causing some consumers to pay higher grocery prices, according to a report by Consumer Reports and Groundwork Collaborative. The report found that consumers were routinely charged different prices for the same products, with differences as high as 23%. Instacart defended its pricing policy by emphasizing its efforts to improve affordability, and insisting that its experiments “are not dynamic pricing” because prices don’t change in real time according to supply and demand. For shoppers, whether Instacart’s tactics meet the technical definition of dynamic pricing is beside the point. Consumers overwhelmingly prefer brands with consistent pricing and respond negatively toward those that use surge pricing and hidden fees. The lack of transparency around algorithmic pricing is likely to be particularly distressing at a time when rising food prices and other stressors are pressuring household budgets.

Fast-food restaurants are leaning into nostalgia to get customers through the door. McDonald’s The Grinch Meal holiday special is so far outperforming the chain’s Minecraft Meal and the revived Snack Wrap. Burger King’s SpongeBob menu “is swimming off trays,” with some restaurants running low on items less than a week after launch, the company told Nation’s Restaurant News. McDonald’s and Burger King’s use of nostalgia—and popular IP—is enabling them to build emotional connections with consumers and create additional reasons to visit their restaurants.

Online grocer Thrive Market will no longer sell alcohol on its marketplace in response to shifting consumption habits, the company told CNBC. Instead, it plans to double down on zero-proof drinks with a selection of over 20 brands and 100 products. Going all in on the sober-curious movement is a savvy move for Thrive Market, given its focus on organic and healthier products. Demand for nonalcoholic products like alcohol-free beer is soaring, driven by younger consumers as well as the better-for-you movement.

2026 is set to be another strong year for the global travel industry. A record 5.2 billion people are expected to travel by air, up 4.4% YoY, according to the IATA. While global demand remains robust, the US industry is contending with several headwinds, including weakening interest in domestic travel—from both US consumers as well as international visitors—which is pressuring budget carriers and pushing prices upward as airlines target premium customers. With the softening jobs market and growing uncertainty contributing to consumers’ “bad vibes” about the economy and their personal finances, US demand for travel is likely to continue to be uneven in 2026.

PepsiCo has reached an agreement with activist investor Elliott Investment Management to cut its US SKU count by 20%, streamline its workforce, and reinvest savings into lowering prices on core brands—moves that largely reinforce strategies already underway. The company expects these price reductions to lift volumes while continuing to expand its growing lineup of “better for you” products, including reformulated snacks, sugar-free beverages, and prebiotic offerings. PepsiCo projects 2% to 4% organic revenue growth next year, but regaining momentum will take time as price-sensitive shoppers increasingly turn to lower-cost private-label alternatives.